Young Entrepreneurs Get Fresh Start in Timor-Leste’s Funding Programme

The third round builds on two earlier cohorts implemented in 2023 and 2024, which provided seed funding to 131 young entrepreneurs, with 93 businesses still actively operating.

Young people in Timor-Leste with a business idea or a small enterprise ready to grow have a new opportunity to access training, mentorship and seed funding through the third Seed Funding Incubation (SFI) Programme. Launched by the United Nations Development Programme (UNDP) and the Institute for Business Development Support (IADE), the initiative supports young entrepreneurs in turning their ideas into businesses that can earn income, employ others and contribute to their communities.

The programme is part of UNDP's Youth Employment and Entrepreneurship Skills (YEES) Project, funded by the Korea International Cooperation Agency (KOICA) and the Government of Timor-Leste. Its launch at the IADE office in Mandarin, Dili, brought together partner representatives and government officials, with discussions centred on giving young people the practical support they need to become business owners and job creators.

Building Businesses That Can Survive and Grow

The third round builds on two earlier cohorts implemented in 2023 and 2024, which provided seed funding to 131 young entrepreneurs, with 93 businesses still actively operating. The new cohort will combine business development training, mentorship and financial support to help early-stage entrepreneurs turn promising concepts into market-ready businesses with stronger prospects for lasting growth.

UNDP representative Brigida Soares described the initiative as an investment in skills, knowledge and the future of local businesses, extending beyond financial assistance. IADE Executive Director Filomeno Belo highlighted its potential to create self-employment and jobs for other young people, and KOICA Deputy Country Director Taegun Kim encouraged recognition of young Timorese as innovators and future economic leaders.

The government's wider ambition is to expand production and exports, reducing dependence on consumption and imports. Ezaquel da Costa Babo, advisor to the Minister Coordinator of the Department of Economic Affairs, encouraged participants to develop businesses that use local resources, support communities, introduce innovation and open opportunities for employment and trade.

Who Can Apply and Which Ideas Qualify?

The programme welcomes Timorese youth aged 18–35 who have innovative business ideas or existing micro-enterprises they want to expand into small enterprises. Applications from young women, persons with disabilities and young people in rural and municipal areas are particularly encouraged, helping extend access to entrepreneurial support across different communities.

Three sectors will receive attention: technology innovation, general manufacturing, and accommodation and food services. Eligible ideas can include digital services, e-commerce, clean technology, locally made consumer goods and products that add value to local raw materials. Hospitality, eco-tourism, food processing, culinary ventures and sustainable food services are also included, creating opportunities to serve residents and the growing tourism market.

Public servants cannot apply, in accordance with Public Service regulations and the programme's existing policy. Previous beneficiaries who have already received similar institutional assistance are also excluded, including those recently supported through YEES, comparable partner initiatives or specific IADE innovation loans.

Applications Close on 23 September

The application period runs from 9 to 23 September, with a target of 380 participants. Training will take place at IADE offices in Dili, Baucau, Ermera and Liquiçá, and information sessions will be organised in these municipalities during the application period to help interested young people understand the opportunity and its requirements.

If applications exceed the target, IADE and UNDP may select participants through document screening of their business ideas or models. Assessment criteria include innovation, economic viability, potential to scale up, sustainability, compatibility and economic impact, with detailed explanations available through the application website.

Interested applicants can complete the online application form or submit a physical application to an IADE office. Application materials are also accessible through the social media platforms of IADE, UNDP and Knua Juventude Fila-Liman.